Oil Prices Rise Amid Saudi Arabia and Venezuela's Cuts

  • Economics
Oil Prices Rise Amid Saudi Arabia and Venezuela's Cuts

Saudi Arabia’s plan to curb supplies and oil export cuts from Venezuela due to power blackout have caused oil to rise to around $67 a barrel on Tuesday.

Reuters quoted a Saudi official as saying that the kingdom is trying to use up a supply glut and support prices, adding that it will make sure to maintain its oil output below the required level as part of an OPEC-led supply cutting deal.

“This shows Saudi Arabia’s resolve to keep the oil market balanced by keeping oil supply tight,” the news agency quoted analyst at Commerzbank, Carsten Fritsch, as saying.

“Additional buoyancy has come from news that the massive power outage in Venezuela is also hampering the country’s oil exports,” Fritsch added.

“We see a tightening underlying physical crude balance as a key pillar of support for outright prices at this point in the year,” analysts at JBC Energy confirmed in a report.

Source: Kataeb.org